LegalZoom.com, Inc.

Good day and thank you for standing by. Welcome to the LegalZoom's second quarter 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Tyler Drew, Investor Relations. Please go ahead.

Thank you, operator. Welcome to LegalZoom's second quarter 2025 earnings conference call. Joining me today is Jeff Stiebel, our Chairman and Chief Executive Officer, and Noel Watson, our Chief Operating Officer and Chief Financial Officer. As a reminder, we will be making forward-looking statements on this call. These four looking statements can be identified by the use of words such as believe, expect, plan, anticipate, will, intend, and similar expressions and are not and should not be relied upon as a guarantee of future performance or results. Such four looking statements are based on management assumptions and expectations and information available to us as of today's date. These four looking statements are also subject to risks and uncertainties that could cause actual results to differ materially from such statements. These risks and uncertainties are referred to in the press release we issued today and in the Risk Factors section of our most recent quarterly report on Form 10-Q filed with the Securities and Exchange Commission. Except as required by law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise. In addition, we will also discuss certain non-GAAP financial measures. We use non-GAAP measures in making decisions regarding our business, and we believe these measures provide helpful information to investors. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Reconciliations of all non-GAAP measures to the most directly comparable GAAP measures are set forth in the Investor Relations section of our website at investors.legalzoom.com. I will now turn the call over to Jeff.

Good afternoon, and thank you for joining our second quarter earnings conference call. We are very pleased with the accelerated progress that was made this quarter and believe it will benefit us going forward. As I complete my first full year as CEO, I want to take a brief moment to reflect on the accomplishments we have achieved at LegalZen. When I stepped into this role, my objective day one was clear, to build a more consistent, predictable, and profitable business. One that could support sustainable, long-term growth, resilient to changing economic cycles. Our second quarter results demonstrate the work we have done to achieve these objectives, notably ahead of plan. First, we've stabilized the business and reignited subscription revenue growth. Second, we're building a premium brand and new suite of products that cater to the diverse needs of high-quality small business owners and individuals. Third, we're delivering operating efficiencies and expanding margins, strengthening our financial profile. All of this rolls into our second quarter strong results. Total revenue reached $193 million, up 9% year over year, ahead of expectations. Subscription revenue grew 10%, marking our second straight quarter of sequential growth and early achievement of our double-digit growth target, two quarters ahead of schedule. It is worth noting that our subscription revenue growth was led by our compliance offerings, including our new compliance concierge product suite, which we will talk about later. Further, our compliance offerings showed encouraging improvement in first-year retention, indicating that customers are appreciating the incremental value that we are delivering. With respect to our new concierge solutions, We launched and saw strong adoption of products that have shifted up market by adding additional value, leveraging artificial and human intelligence to allow us to offer the highest service levels to customers. On profitability, similar to Q1, we continue to deliver strong margin performance. Our adjusted EBITDA margin reached 20%, a 400 basis point improvement year over year, reflecting strong operating discipline and strategic efficiency gains. We also continued to generate healthy free cash flow, reaching $32 million in the quarter, further strengthening our balance sheet. Given our strong performance and momentum, we are raising our full-year revenue guidance from 5% growth to 8% while maintaining our 23% adjusted EBITDA margin outlook. We attribute the achievement of these milestones to the work we have done to realign our organization to focus on subscription-based growth and improve operational efficiencies to create a more profitable business model. As part of this strategic realignment, we executed across the three key focus areas we outlined when I first joined as CEO. One, optimize our subscription business. Two, reorient our go to market approach. Three, leverage artificial and human intelligence to deliver expertise to our customers. We made solid progress across these three areas over the last year. In addition, we made a strategic acquisition, Formation Nation, that was not only a creative and enabled us to bring in a world-class team of sales and service experts, but also sets us up to further advance our market position and realign our premium brand messaging. Let me now walk through updates across our three key focus areas. First, subscription model optimization. To put it bluntly, our subscription strategy is working. We drove a 22% increase in total subscriptions in Q2, powered by enhancements in packaging, pricing, and personalization. We continue to bundle services that deliver incremental value like forms, e-signatures, and bookkeeping into premium tiers, driving stronger early engagement and longer term cross-sell opportunities. Last quarter, we launched our most comprehensive subscription suite of products to date, the Concierge Plan, a full-service white-glove suite of solutions driven by artificial and human intelligence designed for the sophisticated small business owner that prefers a hands-on solution. The first product, Compliance Concierge, has been a strong success and includes a do-it-for-me solution to filings, permits, and alerts alongside a dedicated advisor, at a price that's still significantly lower than traditional legal services. We also soft-launched four other concierge products that are currently being tested. Each affords customers the ability to offload their business's legal and compliance work to our team. Strong initial traction from our Do It For Me products, including early adoption and customer response, validates demand and reinforces product direction as we scale through expanded offerings and long-term capabilities. Importantly, DIFM products garner significantly higher prices, or ARPU, attract higher quality customers, and we believe create greater customer stickiness. This is central to our strategy of delivering intelligent, expert-led, proactive legal support at scale, which we believe will support renewal and retention trends over time. Second, evolving our go-to-market strategy. Our go-to-market strategy is focused on positioning LegalZoom as the trusted legal brand for small businesses to drive awareness and consideration. This spring, we launched a new brand campaign that frames LegalZoom as a legal companion for every step of customer's journey. Our message, technology when you want it, human support when you need it, reinforces the principle behind AI augmented expertise. Without increasing our overall ad budget, we delivered a multi-channel, full funnel brand media campaign, driving awareness, consideration, and conversion under a single brand narrative. The campaign deployed across connected TV, digital, and mobile with strong early results that we expect will build steadily over time. Of particular note, we saw sequential improvement in site traffic and engagement trends in June and July. following the launch. We maintained a healthy return on ad spend, or ROAS, despite a longer brand payback curve, and we maintained marketing discipline with low commitments to brand spend and return hurdles for performance channels. We plan to launch additional phases of the campaign across social and offline channels to build on that momentum. In addition, we will continue to deepen channel tests and diversification to optimize full funnel performance. Given the early success, we may consider incrementally adding to our marketing budget, but would do so within the confines of our overall expense schedule and margin profile. We're also expanding visibility through strategic partnerships and driving new customers through growth in our channel partner program. Most notably, we teamed up with two AI pioneers. First, with Perplexity. We launched a tailored legal support program for Perplexity Pro users. an innovative move that places LegalZoom at the intersection of legal expertise and emerging AI-led search behavior. More recently, we've announced a new relationship with OpenAI. OpenAI is launching agentic capabilities inside ChatGPT, which they will be rolling out to 30 million users. Our collaboration enables ChatGPT agents to access LegalZoom's robust legal resources through advanced AI capabilities to ensure users are given high-quality legal information and insight. The system can intelligently navigate legal resources, run analysis, and even deliver editable documents and spreadsheets. We believe collaborations such as these will be instrumental in boosting LegalZoom's brand presence and driving new customer acquisition. Finally, AI augmented innovation and service delivery. AI is becoming a fundamental differentiator for us, particularly as we build out our DIFM product suite that I spoke to earlier. We see a strategic opportunity to lead by combining proactive legal insights with automated execution, leveraging 20 years of robust data. Our AI tools will enable customers to address their needs faster, more efficiently, and with greater personalization. With AI being utilized throughout many parts of the organization, we have enabled higher speed, satisfaction, and scalability with shorter fulfillment times and improved resolution rates. With this foundation in place, we're turning our focus toward customer innovation, applying AI to create higher value, do it for me offerings that improve compliance and efficiency. A recent example of that is automatic annual reporting within our compliance offerings. With this new launch, all compliance customers, as well as concierge customers, can have their annual reports filed automatically using intelligent software with little to no need to intervene. The net result of our push toward deeper engagement thus far has been significantly more annual reports filed and more businesses remaining compliant, which we believe has contributed to the improved retention previously discussed. We have a pipeline of DIFM and Do It With Me products being launched as we accelerate our offerings with improved AI, automation, and service levels. This is in keeping with our focus on quality share, finding the best customers, and providing the best subscription offerings available. AI, to be clear, is not optional at LegalZoom, and we're just scratching the surface here. And I'm personally excited about the AI product roadmap. Lastly, I'd like to touch on our recent acquisition of Formation Nation. This strategic acquisition brings complementary brands and core capabilities that align seamlessly with LegalZoom's vision. We are extremely pleased with the transaction for several key reasons. First, integration efforts have been swift and successful. We've onboarded a sales team of more than 130 experienced professionals as of Q2, significantly strengthening our customer service capabilities. and leveraging a brand strategy to differentiate between value and premium product offerings. We've also initiated cross-sell and up-sell opportunities within our respective customer bases. Notably, we've repositioned one of the Formation Nation sales centers representing approximately 17% of the sales team and who are now focused on selling LegalZoom products, enhancing our ability to deliver higher touch formation and compliance services, an important part of our strategy to attract and retain higher LTV customers and sell more DIFM products. Second, our strategic marketing investments are already yielding results, driving increased traffic and engagement to the Formation Nation platform while reaffirming LegalZoom's brand ethos. Finally, we acquired an amazing team. The leadership is bar none in sales and service, and the broader team continues to teach us best practices. In short, this acquisition is already delivering meaningful value, and we are comfortable stating that we are now one team with a singular mission and focus. In summary, we are ahead of schedule on our strategy, and the business is on a stronger foundation than it was a year ago. Looking ahead, we remain confident in our growth trajectory. I would like to also take a moment here to thank our tremendous team whom I personally owe a large debt of gratitude. This has been a difficult year with a lot of transition and change. It has also been a hugely successful year, and I'm proud of that. The speed at which we've executed is a testament to the strength of the team here at LegalZoom. And this team, I firmly believe, is still being underutilized. They are that good. I deeply believe in all of this and that with this team, I'm convinced we can do even more together. With that, I'll now turn the call over to Noel, who will take you through the Q2 financials and updated guidance in more detail. Noel?